Foreign Law Firms: What Roles Can They Play in Syria’s Future?

Walking down the corridors of the Dubai International Financial Centre (DIFC), one cannot but notice the collection of foreign law firms- Ashurst, Clifford Chance and Hogan Lovells to name only a few- that have solidified their presence in the United Arab Emirates (UAE). In addition to Dubai, firms like these have branched out with offices in Abu Dhabi as well and are servicing the Gulf region in general. For any Syrian roaming through the DIFC, it is tough these days to imagine foreign firms establishing themselves in their home country as they have done in the UAE. This is not least due to the fact that Syria is presently in a state of war but also because in contrast to the UAE, international firms are not legally authorized to set up operations in Syria. One question Syrians should ask at some point is what roles, if any, do foreign law firms have to play in the country once the conflict there is resolved and reconstruction commences?

Syrians can boast of a handful of impressive and prominent local law firms, many of which have kept their offices open during the current crisis. These firms are led by reputable lawyers who have in many cases studied abroad before returning home to manage their practices. After the economic liberalization process was initiated by the government during the 2000s, Syrian lawyers were taking the lead in advising on the numerous business transactions that were being undertaken in Syria.

Before unrest gripped the country in 2011, the most exposure foreign law firms had in Syria was through their abilities to conclude cooperation agreements with local firms to work on sizable deals together. During that period, the government was pushing forward with plans for major infrastructure projects that were expected to boost the presence of international companies involved in a wide variety of sectors in the Syrian market. Having acquired experience on the global level, the foreign firms would have been in a better position to advise the key players, especially the foreign investors, on the main legal aspects of these projects but they would have had to link up with the local firms who were qualified to advise on Syrian law.

Several notable conferences, one specifically dedicated to lawyers at the Four Seasons Hotel in Damascus in July 2008, brought Syrian lawyers in contact with some of the world’s leading legal personalities and they both had chances to exchange ideas and perspectives while building strong connections. Another feature of this collaboration was on display in December 2010 as a group of international lawyers joined their Syrian counterparts once again at the Four Seasons Hotel to discuss the strengths and weaknesses in the Draft Public-Private Partnership Law. Had Syria been spared the conflict and had the Draft Law been enacted a few months later as scheduled, it would have created plenty of opportunities for foreign and local lawyers to cooperate further. It was evident from that workshop that the international law firms were getting excited about adding Syria to their list of prospective business interests. Three months after that conference, they started to slowly retreat as images of civil unrest on Syrian streets put the brakes on their plans.

As Syria has gone through four years of war, it is becoming crucial to plan ahead for the future. Much of the country’s infrastructure has been destroyed or damaged and the economy has been set back decades. The economic plans that were being unfolded up until March 2011 are irrelevant for the future of Syria today. The demands of the country in the coming years may require more than the services the local markets are suited to provide. So as far as the legal market is concerned, one has to return to the question posed earlier- what roles, if any, do foreign law firms have to play in Syria once the conflict is resolved and reconstruction commences? Should Syria consider following the UAE example and make its legal industry accessible to foreign players or should it continue with the model of cooperation agreements between Syrian and foreign firms?

Two decisive factors that will help determine what choices should be made are how fast reconstruction will proceed in Syria and what is the capacity of the local law firms to accommodate all the work that is anticipated during that phase? Given the significant rehabilitation that will be required in Syria, the luxury of time may not be available and thus, policymakers and businesses will be expected to move fast to meet domestic demand for a range of essential services. As mentioned earlier, Syria is home to a handful of distinguished firms that can deliver but can they satisfy the whole market even if they have the support of international firms behind them on a cooperative basis? Or should foreign firms have the opportunity to operate directly in Syria alongside their local counterparts, which would mean competing with them for the most part?

If inviting foreign law firms into the market is considered, should they be required to employ a high number of Syrian lawyers? For instance, foreign lawyers and not UAE nationals mainly occupy the offices of international firms in the UAE. However, it should be remembered that Syria’s local population is much greater than that of the UAE. Syria’s universities are still producing a sufficient number of law graduates skilled in the national legal system that will certainly benefit any firm that opens in the country. On another issue, should only Syrian nationals who are qualified attorneys have rights of audience in the Syrian courts? This is the position adopted in the UAE, which means that in litigation lawsuits, the foreign firms have to instruct local advocates in the UAE to represent their clients.

Even if Syria liberalized its legal market and opened it to foreign law firms, it should not be presumed that they would flow into the country like they have in the UAE. They might expect the judiciary and the Syrian Bar Association to undergo a certain degree of reform so as to enhance their independence for instance so that they can cater to the needs of international firms, which operate on a different level than the domestic firms. These are substantial points all interested parties will have to contemplate if these circumstances arise.

Conclusions can be drawn that the legal culture in Syria may preclude the notion that foreign law firms should play a direct role in the country. It is very probable that given the nature of the industry, the legal profession should remain within the domain of Syrian lawyers who can resort to cooperation agreements with international firms whenever they deem it favourable to do so. While many people are impressed with the pace of progress in the UAE, not everyone wants to see it replicated on a similar footing in Syria, which in the end is a different country with its own separate priorities to consider.

It is also imperative to bear in mind one essential component that cannot be neglected, which is the role of Syrian lawyers who live and work abroad. Among Syria’s best and brightest, many have sought careers outside their country, including in the legal profession. They work for the leading law firms in the world and some have even attained the status of partner, which puts them in an influential position to steer corporate policy within their firms towards their native country if opportunities there arise. It might be that the optimal policy should be to find a way to encourage these types of individuals to return to Syria once peace has been restored to set up their own firms.

All these proposals are worth scrutinizing for the time being. This analysis does not seek to answer any of the questions posed above. Rather, it aims to open the forum for discussions among policymakers and interested parties to decide what is in the best interests of the country, its people and its legal industry and how to proceed forward once the conflict has come to an end. The ideas that have been put forward, such as the UAE model, are there to help guide the debate but surely not to determine it. Whatever decisions are made, it is certain that if the services of international law firms were required during the decade preceding the conflict, then they will most probably be sought in the future.